System simulation application for determining the size of daily raw material purchases at PT XY

Abstract

Every manufacturing company needs to implement green production, including PT XY as a marine catchment processing industry in Sumatera Utara Province. The company is engaged in the processing of squid for export purposes. The company's problem relates to the absence of a decision on the daily purchase amount of the squid. The purchase of daily raw materials in varying quantities has caused companies to face the problem of excess raw materials or otherwise the lack of raw materials. The low purchase of raw materials will result in reduced productivity, while large purchases will lead to increased cooling costs for storage of excess raw materials, as well as possible loss of damage raw material. Therefore it is necessary to determine the optimal amount of raw material purchases every day. This can be determined by applying simulation. Application of system simulations can provide the expected optimal amount of raw material purchases.